Hotels build a system of perks for frequent visitors to their rooms, with no upfront fee for the extra set of pluses.
Such rewards and recognition are stay-based and open to all. They’re used mainly by domestic and international business travellers, for whom the extra services offered by hotels matter. "The benefits from preferred guest programmes are important for the business and high net-worth customers that we cater to. This is evident in an increasing trend of redemptions we witness," says Prasanjeet Dutta Baruah, vice president- marketing, The Oberoi Group.
BENEFITS: There are different levels of rewards depending on the number of points one has accumulated. So, one could be a Gold, Platinum or Black-level member, if part LPHR's Leela's GHA Discovery programme. Or, a Red, Gold or Platinum-level member of the Trident.
At the basic level, all preferential treatment to guests begin with room upgrades, free double occupancies, late check-outs and so on. As one moves up the loyalty grades, the number of freebies go up. So, the highest level member, the Platinum Tier of Trident hotels (part of the Oberoi group), the Trident Privilege Program, will get discounts on the business centre charges, besides dining vouchers and guaranteed room availability 72 hours prior to arrival. As part of Leela's Platinum membership, one would automatically be entitled to a unique local experience, like a private guided tour to an art exhibition in Berlin or ringing the closing bell of the NYSE at Wall Street.
Hotels have realised that the broader the programme's canvas, the greater the member’s stickiness to stay with it. "Consumer preference for a brand is a function of his experience with the brand. Loyalty programmes merely reward that commitment. While doing so, we try not to limit options to earn and redeem points for his experiences," says B Hariharan, vice-president, marketing, ITC Hotels. ITC has its own 'WelcomAward' programme.
HOW THEY STACK UP | |||
Loyalty Programme | Hilton HHonors | Leela’s GHA Discovery | Trident Privilege |
Valid across | Over 3,750 hotels worldwide | Over 300 hotels worldwide | Hotels |
Key product benefit | 50 airline partnerships No blackout dates - rooms on priority | Local experiences unique to each place | Gift vouchers, spa therapies & 25 frequent flyer programs |
Membership levels & criteria | Blue - single-day stay Silver - four stays/10 nights in a year Gold -16 stays/ 36 nights/60,000 points Diamond - 28 stays/ 60 nights/ 100,000 points | Gold - Single-night stay Platinum - 10-night stay per year Black - 30-night stay per year | Red - Single-day stay Gold- five-day stay/ 10,000 points Platinum -12-day stay/ 40,000 points |
Points earned on total expenses Stays in Hilton’s case refers to checking-in 4/16/28 times a year |
So, as an extension of the benefits provided to customers, hotels have tied-up with an assortment of spas, airlines and even international hotels. ITC's 'WelcomAward' programme has tie-ups with three airlines — Air India, Jet Airways and Kingfisher Airlines. One can transfer his WelcomAward points to the airlines' frequent flier programmes. The Leela has a partnership with Global Hotel Alliance (GHA), an alliance of 300 upscale and luxury hotels across 48 different countries. The Hilton's guest-loyalty programme, Hilton HHonors, provides the benefits across Hillton Worldwide's 10 distinct hotel brands.
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"We have systems whereby no sooner a member checks in at any of our member hotels, anywhere in the world, his guest history is shared through, which lets him experience the personalised service he is used to," says Sanjoy Pasricha, VP, sales and marketing, LPHR.
COST: Stay-based reward programmes are not charged. Costs are in-built in the room rentals, which could be Rs 16,000-plus a day for a luxury segment hotel in Mumbai and Rs 13,000 for one in Bangalore. However, rates can go up substantially when it is a full house or during holiday seasons. While staying overnight will automatically make one a member, only frequent stays will help enhance one's membership grades. For instance, a Gold-level member completing 10 nights of stay across any of the GHA hotels in one year will earn himself a Platinum membership. A further 30 nights of stay and he is automatically in the highest level, the Black membership.